Sunny Isles Beach Real Estate in 2019

Sunny Isles Beach real estate

Sunny Isles Beach, Florida is a city located on a small barrier island bounded by the Atlantic Ocean on the East side, the Intracoastal Waterway on the West side, Golden Beach on the North and Bal Harbour on the South side. It offers about 2.5 miles of newly built most luxurious oceanfront condos with an average listing price of over a million dollars and ranging on the high end into tens of millions of dollars. Because of its ultra high-end condos, the city has earned several nick names such as ‘The Venice of America’, ‘The Florida’s Riviera’, ‘The Billionaire’s Row’ or ‘The Billionaire’s Beach’.

The concept of “condominium” living has been redefined by the new, brand-named condos offered in Sunny Isles Beach. These are more like private mansion in the skies, serving to the most discrete buyers looking for top amenities, private beaches, 5-star in-house dining, various sports and fun activities and spectacular views – the sunrise and the sunset as well as downtown Miami and the Intracoastal island life. Sunny Isles Beach also offers some of the most pristine single family homes located in an area called Golden Shores, which is situated directly across the street from the beach and offers easy access to major shopping in the area.

Sunny Isles Beach has always been thought of as a great investment community for many reasons – it offers top luxury condos situated directly on the beach, ample parks, warm tropical climate, warm Atlantic ocean waters, diverse culture, fine restaurants and great shopping are all within the short walking distance from your condo. The luxury condominiums turned Sunny Isles Beach into one of the most desirable places to own a home in the country, and you can ensure that Sunny Isles Beach real estate will continue to attract most sophisticated buyers in the world.

If you’re into activities, no matter what your sport of choice is, Sunny Isles Beach has it all – from various beach activities such as parasailing, jet skies, fishing, diving, boating or just sun-bathing – Sunny Isles Beach offers the best of all the worlds!

Although the luxury condo market, in most of the desirable areas such as Aventura, downtown Miami, Miami Beach, Key Biscayne, have experienced a slight drop in value in 2018, Sunny Isles Beach showed a 1 percent increase from the prior year. Year-over-year, the inventory marginally declined 2 percent from 1,541 listings to 1,510 homes for sale on the market.

Housing Marketing Predictions – 2019 – Sunny Isles Beach Florida

Since the area did see a drop in the past years, the area continues to grow which has led local governments to carefully examine and properly assess the real estate taxes and to get the correct outlook and forecasts on the future real estate market values in 2019. However, as of the beginning of 2019, the Miami-Dade continues to see decent gains in property values, mainly due to continued demand for single-family homes in the mid-range markets, where countywide, property values grew 3%.

The market has been very active during the last quarter of 2018 and into the beginning of 2019 which is a good indication for good things to happen in 2019. The higher-end properties however are still going to decline due to market correction in that segment. With the prices coming down 20 to 30 percent lower, the higher-end properties will become attractive again to investors and end users, so it will be a good time to buy again.

Sunny Isles Beach housing trends

The table below, taken from Zillow.com represents the real estate facts and average home values in Sunny Isles Beach.

Sunny Isles Beach Real Estate Facts

Total Homes for Sale: 1,617
Median Home Values Estimate: $405,800
Home Value Forecast: -1.9%

Average Home Values by City
Sunny Isles Beach – $405,800
Aventura – $342,900
Bal Harbour – $1,043,000
Bay Harbor Islands – $289,300
Golden Beach – $932,400

The median home values have risen from below $400,000 to $405,800 for the area. Although the home value forecast is still in negatives, with the new condos hitting the market in 2019, this for sure will change to a positive number by the end of 2019. With Sunny Isles Beach being not the most affordable, but surely not the highest priced in the area, next to Bal Harbour. It is expected that these prices are going to drop first before they start to rise again.

Sunny Isles Beach Insights 2018

According to the graph below courtesy of Trulia.com, Sunny Isles Beach is a very well-organized community that is dedicated to those that are living in the area. With the majority of those living in the area holding a degree, the area continues to be a favorite for those of all ages.

The housing market trends are also shown in the graph below provided by Trulia.com regarding Sunny Isles Beach condos and other properties for sale in the area. This provides more insight into the trends from the previous months leading up to this current month.

Sunny Isles Beach market report

According to the charts, the median sales price for homes in the area from October to Jan was $325,000 based on 97 different homes during that time. The price per square foot for the properties in the area was $321. This is a decrease of -5% compared to last year’s amounts. The decrease continued the trend to this year.

The median rent per month was around $4,000 between December and January, making it one of the bigger amounts in the area that is steadily going down in the cost per square foot to buy, while rent continues to be a large amount.

The trends continue to change with every passing month, making this something that continues to be talked about and investors continue to watch. With the prices falling low, the time to purchase real estate in the area is now. The prices per square feet are expected to rise again with the coming year according to numerous sources.

This additional chart shows the home values that are along the strip by the beach itself, providing further information and a graph that you can actually see the amounts side by side. This provides a good comparison for those looking to invest or purchase in the Sunny Isles Beach area.

Real Estate Appreciation

Neighborhoodscout took to tracking the Sunny Isles Beach real estate appreciation. This information was given to those that are looking to invest or purchase in the area and want to make an informed decision. According to the chart that they provide, Sunny Isles has many condos that have been performing above average.

The chart below, courtesy of Neighborhoodscout.com shows us that the top producing neighborhoods in the area are Collins Ave, N Bay Road, Bayview Drive, City Center and Bal Harbour Blvd. These areas are not only seeing a lot of development, but a lot of changes for the future.

Sunny Isles Beach real estate trends

The number of homes and apartments in the area is over 10,000 with a median value over $600,000. The renting is at an all-time high, coming in at $2,500 for the available median values. With homes costing this low to purchase, yet renting being as high as it is, many investors are quickly purchasing the real estate below the current market value.

Purchasing it prior to having the assessments done on the buildings can help those investors that want to get a great deal, get one before the assessments bring the property value and taxes much higher.

The current market shows that more condos and apartments are provided in the area over single-family homes. This is making it easier for those moving to the area to rent a place prior to owning one, if they ever wish to in the area. Over 50% of these apartments and condos are in the two-bedroom range, providing a decent size for a large rent amount.

Reasons to Invest in Sunny Isles Beach

1. The Beach
This brings everyone and anyone around when it comes to investing in something. You will find renters from around the country, around the world, that choose to make Sunny Isles their home just for the simple fact that it is by the beach. Investors can charge more for ocean-front properties.

2. Limited Supply of Homes
There is currently not a lot to choose from for those that are moving to the area. Many of the rentals are already being rented and some of them might not suit the needs of the person. By investing in apartments or condos, you can have a prime rental that can easily be filled. There is unlikely to be any new building in the area in the coming years.

3. Strong International Market
Not just those from the area like to purchase real estate on Sunny Isles. Those from other countries like to purchase luxury vacation homes that they can use during the off-months. Providing a way for them to rent these during those months, and then provide rent for other months to other individuals opens up numerous options to the investor.

4. Massive Rental Population
Miami alone is a massive rental market, but when considering the amount of people that want beach homes, the rental population becomes even larger. Some are unable to pay high prices to purchase homes, so they rent for a specified amount of time. Those that are living in the area are used to the high rental prices and willing to pay for them in a nice condo or apartment.

5. The Job Market Continues to Grow
As more and more people continue to look for jobs throughout the Miami area, many will move to this area, as the job market continues to grow. According to Simply Hired, there are over 30,000 new jobs that need to be filled with close to 3,000 of them being posted recently. This means more people will move to the area to find work.

6. Strong ROI for Landlords
Those that are renting to anyone coming to the area are going to experience a strong ROI on the investment that they make. There is a high demand for properties by the beach and Sunny Isles Beach is one of the premier destinations. This means having a lavish condo or a high-end apartment in the area is going to go for a decent amount of rent in the area. Throw in extra amenities, a pool, large deck and a backyard ocean and those renting the properties out are hitting a strong ROI.

7. It is Easy to Be a Landlord in Florida
Many states throughout the US have strict rental laws that landlords have to abide by when renting to someone. Florida does not have the same laws. They are a landlord friendly market and they ensure that you have the control if rent is not paid on time, or when there is damage done to a property. It doesn’t matter who you’re renting too, they ensure that all violations are taken care of; making is less of a burden for landlords.

8. Most Tourists and Residents are Renters in Sunny Isles Beach
Those that are coming to the area will need a place to stay. Many look for rental properties to turn into their vacation homes, regularly renting them every year at the same time. Those residents that live in the area will rent for some time because the prices to purchase may be too high or they may not want to deal with the costs of purchasing a home. Plus, renting also comes with amenities and extras, providing them with a care-free way of life.

Investing in Sunny Isles Beach Real Estate in 2019

Investing in Sunny Isles Beach condos and other properties continue to be a great choice to make. Not only is the area active and flourishing, but the prices are currently at its lowest point since 2012, making it an ideal investment. Additionally, adding in the cost of renting and you are easily able to rent the condos that you purchase, making up the costs that you’ve spent on them ten-fold.

Sunny Isles Beach has always been an investment playground for buyers across the entire globe. Not only that, but according to The Real Deal, Sunny Isles Beach is Miami’s new billionaire playground, bringing in a much luxurious, lavish crowd that these condos and rentals can tap into.

Are We Due For A Recession in 2019?

GDP Graph

Is a recession looming? It’s an important question because the U.S. economy has been experiencing one of its longest expansions ever. There were two recessions in the 1970s, two in the 1980s, one in the 1990s and two in the 2000s. Since 2010, there have been none.

Is there A Trigger?

Every recession has a trigger. In the 1970s it was energy price shocks. Could that happen today? Probably not, because the U.S. is now the world’s biggest oil producer. one potential trigger could be an unsustainable rise in borrowing. But the fact is consumer debt has risen only about 5 percent annually for the last few years. Although that’s fast, it’s not catastrophic. Past recessions were preceded by debt increases of 10 percept or more. More importnat, the largest part of household debt is home mortgages and those loan balances total about $10 trillion today, about the sme as 10 years ago even though housing values in the aggregate have climbed from $18 trillion to $28 trillion.

Another trigger could just be psychological. Pessimism leads consumers to spend less. That leads businesses to scale back, reduce investment, and not build that additional factory or office. But consumer confidence this year is at an index level of 127, the highest reading in more that 20 years!

Finally it could be policy error. Turkey is an example of how a decision – lowering interest rates in the face of rampant inflation – can lead to a crisis.

Although it’s not clear what could trigger the next recession, it’s a good bet it won’t have anything to do with our industry. The housing market still has room to grow. A total of 6.1 million existing homes plus newly constructed homes will be sold this year. That’s the same level as in 2000, when the market was considered well balanced. Homebuilders are at last responding to pent-up demand by increasing housing starts and creating jobs. For these reasons, the odds of a recession in 2019 are slight. And if we do see a drop in GDP, it will likely be mild – nowhere near the intensity of the recession a decade ago.

Concerns about a housing slowdown NOT supported by the data. However, the pace of existing home sales is expected to decline slightly by the end 2018, despite population and economic growth, lower unemployment, and modest wage gains. Declining affordability is the issue.

Who Is Interested in Real Estate in South Florida?

Miami real estate

South Florida has long held the interest of people who are looking to make quality investments in homes, as well as in businesses. While there is interest from some people who are living in and who are citizens of the United States, such as the many potential investors in New York, most of the investors today are coming from other countries.

The Biggest Investors

You will find that there are buyers from many disparate countries that have a real interest in the properties in South Florida whether they are residential or commercial. People see these as good investments. Two of biggest foreign investors in the area are those who are from Argentina and Venezuela. In fact, citizens of Argentina accounted for 15% of home purchases in the area, followed closely by Venezuela with 11.5%.

Those two countries alone made up more than a quarter of the sales in the area in 2017, but they were certainly not the only countries with a large number of interested foreign buyers. Colombia accounted for 9% of home sales in South Florida, and Canada accounted for another 9% of sales.

The other countries that round out the top ten for foreign investors include Brazil (4.9%), India (4.7%), Peru (3.5%), Philippines (3.2%), Mexico (2.7%), and the Dominican Republic (2.6%). Overall, foreign investment is more than 66% of the total sales in the South Florida area.

Miami is the top market for foreign investors, but there are other parts of the country that hold interest for foreign buyers, as well. Some of the popular locations that follow Miami include Los Angeles, Bellingham, WA, and New York.

Why Is South Florida So Popular?

Of course, when you see just how many foreign investors are interested in the area, it causes people to wonder what it is about the area that makes it so appealing. A number of factors play into this. For many, the conditions are currently favorable when it comes to buying property in the US, and there is great potential still in this market. The economy is strong, and it is likely to continue getting stronger. The property taxes tend to be quite a bit lower, as well, making it even more appealing.

Additionally, there are quite a few options when it comes to homes and the types of properties that are available (check out prices for Miami real estate here). Whether a buyer is interested in a one or two-bedroom condo, a mansion, or a penthouse, there are generally plentiful choices available in and around the Miami area.

What Does This Mean for Brokers?

Given the number of foreign investors who are interested in buying properties that are located in the South Florida area, it makes sense of the brokers to start learning how to cater to and find those buyers. For example, find out what types of properties tend to interest buyers from those nations. Learn more about their culture, and even learn a little bit of Spanish, Portuguese, and Tagalog.

Lennar Acquisition of CalAtlantic

Miami homes for sale

For more than two decades, Stuart Miller has been the CEO of Lennar, one of the largest homebuilders in the nation. Miller had been with the company through good times and bad, and he was there when the country went through the housing collapse that followed 2007, arguably one of the worst that the nation has ever faced. He has faced down those who tried to defraud the company and was able to increase the revenue of Lennar to nearly $12 billion.

A New Acquisition

In 2017, Miller was looking for more ways that he could help to grow his company. Even though the need for more homes was evident, and it still is, there were some issues. For one, there were labor shortages, which was making it more difficult to get the workers that they needed in order to build their homes. In addition, the price of supplies and materials was rising. Solving those problems was not going to be easy, but Miller had an idea.

He believed that by bringing in another big homebuilder and acquiring them, it could help to increase the number of employees and subcontractors, allow them to have more land, and ultimately, provide the company with more negotiating power. While this proved to be a good option, it was one that did not immediately present any contenders. The companies that were large enough for Lennar and Miller to want to acquire tended to be owned by people who did not want to give up control of their company. Other companies were too small and would not provide the results that they wanted.

However, they did eventually find the CalAtlantic Group, which is based out of Virginia. At the time they considered acquiring the company, CalAtlantic was the fourth largest homebuilder in the United States. They were created when Ryland Homes and Pacific Homes merged in 2015, and Lennar thought that they would be a perfect choice for the acquisition. Lennar did not jump the gun too early though. They studied the company for about six months and finally came to a deal in October of 2017.

They bought the company for $9.3 billion, and they took on the debt from CalAtlantic, which was $3.6 billion. However, this was still a good deal for them. It made them the largest homebuilder in the country, moving D.R. Horton into second place. In addition, they believe that they are going to be able to save about $50 million in construction costs in 2018.

A New Path for Miller

This was one of the last large moves by Miller as the CEO. In April of 2018, he announced that he was going to be moving into the role of executive chairman. The new CEO would be Rick Beckwitt. This would mark the first time in nearly have a century that a Millar was not in the CEO spot at the company.

It will be interesting to watch and see what happens over the course of the rest of 2018 and the years that follow with the new largest homebuilder in the country.

Real Estate News: What Happens When Supply Keeps Falling

Sunny Isles Condos for sale

July was a solid month for Miami real estate, where the median price slightly increased than a year ago. However, on the sales front, we have started seeing an improvement with the luxury properties and even a slight price increase. This pattern will hopefully propel our home sales which have been steadily going downward for the last four months.

Economists note that sales may have been down because of lower inventory. In fact, the last time there was any substantial increase regarding housing inventory was back when Donald Trump was a mere Republican candidate for president, one among a field of 11.

On a national level, homes for sale have dropped over 12%, which is the most substantial year-over-year decline since back in 2013. In January 2018, there was a 3.1-month supply of homes. Anything less than a six-month supply has not been seen since the beginning of 2012, which makes this rather significant.

West Coast Real Estate

West Coast markets have been the largest recipients of this low-inventory situation. San Jose’s metro area has seen the most significant inventory drop year-over-year. This has also led to the most significant price increase, as is expected. When it comes to the number of houses available on the market, there are less than half as many this October than there were a short year ago. This has pumped prices up over 19% with a median price falling at about $1.05 million. Despite the costs, the lack of inventory has led to homes finding a buyer very quickly, sometimes in just few weeks.

Homeowner Uncertainty

With the House of Representatives and Senate still hacking away at tax reform strategies through the month, many homeowners have chosen to step back from the market until more information is known. This is based on the potential for reduction of local and state property and income tax deductions, along with the possibility of changes to the mortgage interest deduction.

However, others have acknowledged that the implementation of these changes is unknown, so others have been open to buying despite the current uncertainty. Experts believe that once a tax bill goes through, it is likely that homebuyer demand will drop in high-tax states, especially where homes are more expensive. This likely would happen slowly over time.

Competitive Markets

Looking at metro areas, Seattle, Washington leads the pack when it comes to homes finding a buyer. In 2016, it took about 13 days, but in 2017 it is down to only 10. Other markets of note are San Jose with 12 median days on the market and Boston with 14 days. Oakland and San Francisco are just below those with houses on the market an average of 15 days.

Estimates

For off-market homes, the median value was just over $250,000, which is up a little over half a percent from September. Much like 2017, just under half of the houses for sale been priced higher than estimates based on a home’s measured value and predictions about final sales price. This led to houses for sale at just a bit above expert forecasts after analysis.

Could the World Cup Increase Real Estate Sales in South Florida?

Miami Condos For Sale

Currently, there is certainly quite a bit of attention on the World Cup, and this excitement over the sport has helped real estate brokers and developers to capitalize on the event. Many have started to find ways that they can increase the visibility of the projects they are working on and trying to sell while using FIFA as a way to connect with potential buyers out there. In fact, soccer has played an important role in a number of different projects in South Florida.

The Excitement of Soccer in Real Estate

At the Paramount Miami Worldcenter, the sales office staff have been watching the World Cup on a video display that measures a whopping 750 square feet. You can also look at the design of this tower to get a better understanding of just how important soccer is to it. Paramount Miami Worldcenter happens to be the only condo that has a soccer field. When the construction is complete for this building, the soccer field will be located on the 9th floor, which is where the amenity deck will be. It turns out that the field was a good idea to help them get some soccer lovers from all over the planet. It was supposedly one of the main draws to people who have bought in the building. In fact, there are several professional soccer players who bought residences at the building because of the field. Already, this building has sold about 70% of the units. The developers credit the international appeal of soccer with the success of their building, as only 12% of the buyers at Paramount Miami Worldcenter are from the United States.

There are other developers and buildings that have taken to celebrating the World Cup, as well. Developer Vlad Doronin offered a four-day trip to Moscow with tickets to the World Cup for the best salesperson from March to June. Doronin is the developer of Missoni Baia, another luxury tower in the Midtown Miami area.

In Brickell, you can even see a massive 10,000 square foot mural of Neymar da Silva Santos Junior on the side of a building at 90 Southwest Eighth Street. Other areas and buildings held kickoff events and viewing parties for brokers and at sales galleries. There is a lot of excitement with the World Cup right now, and it is smart of the brokers and developers to do everything that they can to get more and more potential buyers through their doors. It shows that this is a friendly, multicultural city and that soccer is important here as it is in other parts of the world. Getting people into a good mood with the games and talking about soccer can also be a good tactic in getting them to be more agreeable and want to buy.

It is still too early to tell just how successful this tactic is going to be, but thus far, it does seem to show quite a bit of promise.